AI, in its next generation, could be a step-change for distribution, not so much on its evolutionary path, but with the coming next-level, domain-specific training models, revolutionary.

A New Era Dawns

A tidal wave is about to hit wholesale distribution. AI-powered software is poised to sweep away outdated systems that churn out reports and little else. These new tools won’t just manage data—they’ll act, advise, and transform how distributors operate. For software vendors, it’s a golden moment. Industry heavyweights with deep expertise can lead the charge, but fast-moving startups could steal the spotlight. The race is on, and the stakes are enormous.

The Opportunity at Hand

Software executives hold the reins. They can solve distributors’ toughest challenges—their customers—and claim market dominance. A game-changer looms: a distributor domain-specific LLM training library packed with decades of expert insight. This tool will let vendors build software that doesn’t just help—it captivates. Picture this: distributors grinning, their teams liberated from tedious tasks, laser-focused on game-changing wins. The goal? Software so essential it’s the top pick for distributors hungry for growth.

What’s Holding Distributors Back?

Distributors are in a bind, facing challenges that sting:

• Vanishing Expertise: Veteran [Seasoned managers, salespeople, and consultants once held the industry’s playbook in their minds.] They’re retiring now, and their wisdom is slipping away. Boutique consultants, long a source of specialized advice, are also fading, with few stepping up to replace them. The fallout? A gaping hole in strategic decision-making.
• Skyrocketing Labor Costs: Labor costs are soaring. They’re bleeding budgets, forcing distributors to rethink team roles. Routine tasks are a cash drain—essential but too costly to handle manually. Staff should focus on high-stakes decisions rather than repetitive tasks.
• Spotty Best Practices: Distributors know the playbook—follow-ups, lead tracking, customer guidance. But executing consistently? That’s a challenge. Current software highlights gaps but doesn’t step in to fix them. Discipline falters, and results suffer.
• Digital Shift: Customers now prefer digital interactions over face-to-face interactions. Software must deliver, managing workflows seamlessly to keep interactions smooth, while maintaining a personal touch by providing individually tailored communications.

Where Today’s Software Falls Flat

Most software today is stuck in neutral. Legacy systems spit out dashboards and reports, but they don’t think or act. They leave distributors stranded—data-rich, direction-poor. “AI-powered” platforms don’t fare much better. Their AI components handle basic tasks—data entry, report generation—but that’s just a small convenience, not a game-changer. They don’t execute best practices or deliver the sharp insights of a veteran consultant.

The root issue? Developers often lack deep distribution expertise. Without it, they can’t train AI to deliver the precise, industry-specific advice distributors crave. Generic AI models churn out vague platitudes, not the tailored strategies that move the needle.

Until recently, the gap has been filled by consultants, but they’re retiring, with no real replacements.

Building the Future

Here at WayPoint, we’re finalizing the ultimate AI training model—one that empowers the AI components of distribution software to deliver detailed, growth-driving advice on profits and customer strategies, far beyond the generic outputs of web-trained LLMs or add-ons. It’s the world’s largest library of profit-driving distribution industry knowledge, tactics, and best practices. Now vendors can rewrite the rules by adding AI-driven capabilities that go much, much further. Here’s the blueprint:

• Do the Work: Software shouldn’t just suggest—it should execute. Imagine follow-ups, lead communication, and customer coaching handled flawlessly across the board. AI locks in discipline organization-wide, solving the consistency problem.
• Ditch the Drudgery: Repetitive tasks are a burden, and distributors can’t afford the labor. AI can take them over, freeing staff to tackle big-picture challenges like complex deals or strategic planning. Jobs become more rewarding, and efficiency surges.
• Bring Expert Smarts: Picture software with the savvy of a top consultant, advising on profits, cutting waste, fine-tuning services, and offering tailored strategies for every key customer. That requires AI trained on industry-specific best practices—sales, rebates, operations, transportation. It’s about leveraging the latest metrics for stellar results.
• Talk the Talk: AI needs to sound like it belongs in distribution. It should produce crisp briefings, action plans, customer emails, and kick-off workflows like price updates. Purpose-built language models, steeped in industry context, make this a reality.

How Vendors Get There

The roadmap is ambitious but achievable:

• Smart Middleware: Build a layer that distills raw data into clear signals—profitability trends, customer patterns, hidden issues. This fuels the internal prompts that let AI deliver pinpoint-accurate results.
• Bake in Know-How: Embed real-world tactics—like combining orders, optimizing warehouse operations, or streamlining freight terms—into AI. A distribution-specific LLM training library, brimming with expert strategies, will supercharge the AI component of software systems. Generic, web-scraped training won’t cut it, and distributors will notice the difference.
• Train AI Right: Create AI that speaks distribution fluently, powered by a structured, industry-specific knowledge base. A library built on decades of insight from hundreds of top-performing distributors and dozens of experts will ensure AI delivers the most effective advice from recognized consultants and industry leaders. Software vendors have top programmers, but not top distribution best-practice knowledge—this fills that gap.

The Dream in Action

When it works, it’s electric. Software drives relentless growth, filling the void left by retiring experts. It handles the small stuff, boosting profits and freeing teams for high-level work. Customer relationships thrive, making well-trained software the top choice and securing vendor dominance.

Distributors are eager for this—software that delivers on AI’s promise. Low-level tasks vanish, jobs shift to high-value focus, and expert guidance is always at hand. Operations hit new peaks—follow-ups happen, inventory optimizes, and customers grow more profitable. The software becomes as indispensable as email, woven into every workflow, driving best practices everywhere.

Why AI Training Models Matter

AI is the engine of this shift. It advises, executes, and communicates. But its power depends on training. A decade-long knowledge base, capturing the brilliance of retiring consultants, industry pros, and advanced analyses from leading companies, is the secret sauce. Set for a spring release, this distribution-specific LLM training library will let vendors build AI that’s distribution-smart, not generic. That’s the divide between colorful reports and tools for revolutionary action.

The Bottom Line

AI is the future of distribution software—no debate. But the winners will be those who master the details. Software that bridges expertise gaps, eliminates the grind, and delivers consultant-level insight will rocket vendors to the top.

It will deliver much more than AI-driven conveniences. Its AI will bring expert advice, and actually perform thousands of small tasks—perfectly!  The next wave is coming, and it’ll reshape the industry.

I can’t wait to see it unfold.

About the Author

Randy MacLean founded WayPoint Analytics, which has been delivering detailed cost and profit analyses to distributors and manufacturers for more than fifteen years.  Since 2008, he’s hosted 17 cycles of the Advanced Profit Innovation Conference, produced more than 900 best-practices videos, written six books in his Profit-Driven series, and hosted more than 200 webinars on distribution profitability techniques. The WayPoint Analytics online system and its insights and techniques are widely used by the most successful distributors, adopting data-driven approaches to their profit strategies.  Discover more, or contact Randy at www.waypointanalytics.net